What is a requirement for approving a Reverse takeover transaction?

In the context of approving a Reverse Takeover (RTO) transaction, the requirement for ordinary resolution approval is critical. An ordinary resolution typically requires a simple majority of votes cast at a shareholder meeting, which enables shareholders to collectively agree to significant corporate changes such as mergers, acquisitions, or reverse takeovers.

The rationale here is that RTOs often involve significant transactions that can drastically affect the company’s structure and operations. By requiring ordinary resolution approval, regulatory standards ensure that a substantial portion of shareholders have a say in the decision, prioritizing shareholder democracy and safeguarding their interests.

The other options, while they may reflect different aspects of corporate governance or decision-making processes, do not specifically capture the legally mandated procedure for RTO approvals. Electronic voting, while it can be a method employed, is not a regulatory requirement in itself. Similarly, board meeting approval or written consent from all directors pertains more to internal governance and less to the necessary shareholder backing required for such significant transactions. Thus, ordinary resolution approval stands out as the fundamental step mandated for these critical decisions.